79039, r. Annon, yn.

Knaxnna, 9n
info@buslergroup.com
+380 (63) 719-35-45
Koncan1nnronan xounannn
AB Koncan1nnr Ipynn
www.buslergroup.com


BACK END SALES BOOST PROFITS
by Jay Abraham


The most important part of your newly reformulated selling strategy is back-end
sales. It is unquestionably the biggest single mechanism that can guarantee your
success and multiply your wealth. It's also the most frequently undervalued and
overlooked leverage point remaining in modern business.

Let's dissect the concept of a back end under our marketing microscope for a few
minutes. I think you'll find this exercise particularly enriching.

What do I mean by back end? It is all the products or services you sell and resell to
customers or clients after they have made their initial purchasing transaction with
you.

Virtually every enterprise I look at is, or should be, a back-end business, whether it's
commercial, consumer or professional, because the bulk of the sales, cash flow and
current profit comes from utilizing and then better utilizing a back end.

We'll start with some simple examples and then move onto more sophisticated or
subtle examples.

* A grocery store is a back-end business because the store's real profits come from
customers who keep coming back once or twice a week to buy.

* A dry cleaner is a back-end business, since people on average come back with their
clothes once or twice a month.

* A doctor is a back-end professional, unless he or she is a specialist who only sees
you one time. So is a dentist or chiropractor.

Any enterprise that depends upon customers, clients or patients coming back
continuously, or even intermittently, is a back-end business. With a back-end
business, your goal has to be to make it easy, attractive or appealing as possible to get
as many people as possible to start doing business with you.

Whether or not you make a dime, or even lose a small amount on the generation of



79039, r. Annon, yn. Knaxnna, 9n
info@buslergroup.com
+380 (63) 719-35-45
Koncan1nnronan xounannn
AB Koncan1nnr Ipynn
www.buslergroup.com


that first customer transaction, you know statistically that the majority of people who
start buying from you will return some minimal number of times in the future.

How many times the repurchase, and what and how much the repurchase each time,
has a lot of impact on how prosperous your business or profession makes you.
Getting customers who used to come back once a year to start coming back once a
quarter, or once a month, can multiply your profits enormously.

Getting customers who used to purchase just one or two products to start buying
additional products in an ongoing way can add tremendously to your bottom line.

It costs you a small fortune to acquire a customer in the first place, because you might
have to pay to run a full-page ad that reaches a one-half million unqualified people
just to find the five or 10 qualified people you end up selling to. Or you may have to
pay a salesperson to call on 100 prospects to close two sales. But the cost of reselling
a customer once they've done business with you is only the cost of a phone call, a
sales letter or a personal visit.

The first sale you do with a customer or client may be profitless. You could even lose
money on the first sale. But every subsequent repurchase is tremendously profitable.

So what does this all mean to you? Plenty. It means you need to start focusing on
better ways of getting your customers to buy more often. They may buy the same
product, a related item, or a totally unrelated product or service.

Once you understand why your purpose has be to help your customers get the
maximum benefit and advantage you are capable of giving them, you'll see why
better development of your back end is critical.

The back end comes into play in a different way also. Many enterprises, on their own,
are marginal operations that will never produce massive profits for their owner. And
yet, if you redefine your business as being the "front end" for a different back-end
business, all of a sudden your enterprise gets transformed into a lead generator, which
is very exciting.

A solid "back end" takes most of the burden of generating profit off your shoulders
and allows you to reap residual income from other people's sales. Let me illustrate
this:
A few years back, I advised three different financial newsletters. None made a
particularly large amount of money, even though they had respectable subscriber


79039, r. Annon, yn. Knaxnna, 9n
info@buslergroup.com
+380 (63) 719-35-45
Koncan1nnronan xounannn
AB Koncan1nnr Ipynn
www.buslergroup.com


bases. So I focused on better developing additional back ends for them.

First, I developed the most logical back end - better renewal rates. Then I created
advance and lifetime renewal programs that pulled in tens of millions of dollars for
my clients. After that, I looked at some logical products and services these
newsletters could host.

Second step: we made deals with book publishers, then we made deals with
investment seminar producers. Finally, I went to mutual funds, brokerage dealers and
financial service firms and engineered joint ventures and endorsements of their
products by my client editors and even got one editor to buy and another to start their
own investment businesses.

The result? Newsletters that were lucky to make $200,000, when I first encountered
them, were making more than $20 million in back-end income in less than 18 months.

Or consider a man I was speaking to today. He writes books. He breaks even on the
books, but they get him attendees at his one-day seminars. The seminars make him
reasonable money, but they are the front end for his real back end, which is $10,000
on-site consulting.

Because he understands "back end" and uses it wisely, a break-even front end makes
him almost a million dollars a year on the back end.

Another case-in-point: Two friends of mine decided to go into the simulated diamond
business. One had a front-end-only strategy in mind. Let's look at the dramatic
difference in how both friends fared. It's highly illustrative of my basic message

Friend A was a very competent copywriter who wrote an exceptional full-page ad that
he ran in a large daily newspaper. It cost about $25,000 to run and he barely broke
even. Since Friend A was only focused on the front end, when the ad failed to
produce a massive profit for him, he gave up instantly on the concept and closed the
business down and moved on.

Friend B was much wiser. He wrote a good ad--though not quite as powerful as friend
A's ad. And when Friend B ran his full-page ad in the same newspaper, the loss was
actually about 5% of the cost ($1,000). But instead of giving up on the concept, as
Friend A had done, Friend B looked at the situation differently. He decided to make
selling loose synthetic diamonds only the front end of his business. So when he sent
people their loose stones, he offered to let them trade them in for larger present stones


79039, r. Annon, yn. Knaxnna, 9n
info@buslergroup.com
+380 (63) 719-35-45
Koncan1nnronan xounannn
AB Koncan1nnr Ipynn
www.buslergroup.com


done in rings, pendants and earrings.

Boy, did that difference in strategy pay off!

Instead of continuing to lose money on the ad, every time Friend B ran an ad, nearly
50 percent of the people buying a loose stone for $39 traded it in for an average piece
of jewelry for $400, on which he made $300. In the first year of applying his back-
end philosophy, Friend B made more than $25,000,000 on the back end.

See the difference how looking at your business as a back-end proposition can make
to your success and your bank account?

I want you to stop for a moment, get out a paper and pad and make a lit of all the
additional purchases your customer or client should be making for their best interest
in using your existing products and services. Call this List A. Next, make a list (B) of
all the products or services that precede, correspond to or add to your primary
products and services.

This is your back-end list of possibilities. Look up (in the Yellow Pages) people or
companies selling the various products or services on those two lists and approach
them and ask them to let you offer their product or service to your customers and
prospects on a fair, profit-sharing basis.

What is a fair share? That depends a lot on whether or not the people you approach
have a back end themselves. If they do--and it's potentially significant--you should
keep perhaps 60%-80% of the profits for yourself. If they don't have much, or any,
back end, you should share 50-50--after a consideration to you to help defray selling
costs.

"Back Ends" That Work Well

* Car dealerships sell you service and oil changes.
* Magazines sell you books and tapes.
* Theaters sell you food and beverages.
* Electronics dealers sell you warranties.

Hc1ounnx: http://www.smartbiz.com

P.S. Ecnn Bam neoxonma nomomt n nocrpoennn orena npoax n ntcrpannannx
cncremt paort c knnenramn, nannmnre nam no email info@buslergroup.com


79039, r. Annon, yn. Knaxnna, 9n
info@buslergroup.com
+380 (63) 719-35-45
Koncan1nnronan xounannn
AB Koncan1nnr Ipynn
www.buslergroup.com



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